Utility Dive detailed New York's new standby and buyback rate methodologies, quoting AEE's Danny Waggoner on the benefits for energy storage. Read snippets below and the full article here.

The New York Public Service Commission on March 16 issued an order adopting a new cost allocation methodology for standby and buyback service rates that advanced energy solutions providers say will improve the value proposition for distributed energy resources like electric vehicles, storage and demand management...

New York is adjusting energy market rules to better integrate DERs. In particular, the new methodology to more accurately align individual customers’ contribution to system costs with the rates they pay could help deploy more battery resources in the densest urban environments, according to Advanced Energy Economy.

"We expect that the rates that result from this methodology will have significantly reduced fixed charges that will improve the value for storage, especially in New York City," AEE Regulatory Policy Director Danny Waggoner said.

Standby rates compensate the utility for being available in case a customer's distributed generation fails, while buyback rates cover a customer's export rate, according to AEE...

The new methodology was supported by the City of New York, which told the commission the new allocated cost of service methodology is designed to result in more uniform, fair, and transparent standby and buyback service rates across the state.

Read the full article here.